Agency Workers – Guidance for Managers

This guidance sheet is intended to inform Managers throughout the University about their obligations with regard to the Agency Workers Regulations 2010. This regulation came into force on 1 October 2011, giving Agency Workers (defined as individuals supplied through an Agency) the entitlement to the same basic employment and working conditions as if they had been recruited directly, some of these rights come into effect from day 1 and some when they complete a qualifying period of 12 weeks in the same job.

Agency Workers can claim compensation where they have been denied the terms and conditions granted under the Regulations therefore it is essential that as a Recruiting Manager you ensure we comply with this regulation. Below is an outline of these specific rights as a guide for Managers as well as details of what you should do to ensure that you are compliant with the regulations, these are highlighted by the prefix Action for Managers to help you quickly identify what you need to do.

Agency Workers and New Pensions Legislation

In accordance with the new pensions legislation and the revised pension arrangements whereby employers automatically have to enroll workers who are not already in a qualifying workplace pension scheme into a pension scheme,we have been informed by REED and other supply agencies that in order to be compliant with legislation they will be applying this requirement to their temporary PAYE workers with effect from 1st January 2013.

The cost of funding this pension contribution will be borne partly by the employer, partly by the government and partly by the worker and it means that for those roles which fall under the preferred supplier agreement with REEDi.e admin and ancillary roles across grades 1 to 6 that you will incur an additional 0.75% cost on the hourly rate you pay for the agency worker.

For those roles supplied by REED which fall outside of this agreement and for other agencies that supply specialist staff at grades 7 and above we have been informed that you should expect to pay an additional 1% on the hourly rate and so you should bear these increases in mind when you are budget planning on agency spend.

1)Salford Universities Approach to Pay

The University will engage Agency Workers on the hourly/daily equivalent of the annual salary for the identified comparator role (where a comparator exists) as defined through the HERA job evaluation scheme. There may be occasional situations where a role does not fall within the job evaluation framework, in this instance please contact the HR Services team for advice.

Agency Workers should be paid no less than the hourly/daily equivalent of the bottom of the grade for the role. The University have taken the decision to make this effective from day 1 of the assignment although this is not a legal right until the 12 week qualifying period has been completed. The University should also apply incremental increases in line with University policy.

Action for Managers:Recruiting Managers should ensure that when booking an Agency Worker that they communicate the comparator pay rate with the Agency.

2)Agency Worker Rights from Day 1

Agency Workers are entitled to access facilities and information on job vacancies from Day one of their assignment. As a Recruiting Manager it is essential that you ensure your Agency Workers are briefed on the following;

Access To Vacancies: Agency Workers have the right to be informed of any relevant job vacancies within the University. Vacancies are advertised on the HR website and applications are made via the University’s online recruitment system. The exceptions are those roles which are ring fenced and those which are part of a restructure or redeployment process.

Access To Facilities & Wellbeing facilities (may include): Facilities such as Catering, banking, toilets/shower, employee common rooms, prayer room facilities, library Services, car park and travel, leisure facilities, workplace crèche and language classes. Wellbeing facilities may include Employee Assistance Program (EAP), Occupational health, Complementary therapies, podiatry and physiotherapy services.

  • Action for Managers - You must make your Agency Workers aware of the above day one rights in their induction on their first day of work. Please provide the Agency Worker theAgency Worker Information sheet – appendix 1 and talk them through the key points as part of their induction on day 1.

Annual Leave: In the first 12 weeks of the contract Agency Workers are entitled to 20 days statutory leave and 8 bank holidays (pro rata). Leave requests are subject to manager discretion. Where the contract is 12 weeks or less the preference is to pay leave at the end of the contract. The universities approach is that all annual leave should taken however it cannot be takenprior to accrual. Agencies may vary the way they approach annual leave:

  • Reed Specialist Recruitment(Grades 1-6) will allow Agency Workers to accrue statutory leave which should be booked through the Reed system following approval from the hiring manager. The Agency Worker will be paid on the day that they take the leave.
  • Specialist Recruitment Agencies (Grade 7+)may chose to roll the holiday pay up into the Agency Workers daily or hourly rate instead of paying the Agency Worker for the leave on the day that it is taken. Where this is the case Agency Workers may prefer not to take the leave as they do not get paid on the day.

Action for Managers: Pleaseensure that Agency Workers take their leave and manage their finances to allow for unpaid days where the leave is rolled up into the day rate.

3)Agency Worker Rights from the 12 week Qualifying Period

Upon completion of 12 weeks service the Agency Workers are entitled to the following;

Same Basic Working and Employment Conditions: Agency Workers will be entitled to the same basic working and employment conditions as those employed directly by the University upon completion of 12 consecutive weeks in the same role. At the University of Salford this relates mainly to Annual Leave, as pay, working time and rest breaks apply from day 1.

Annual Leave – The University will ensure that Agency Workers are paid for statutory annual leave (20 days + 8 bank holidays) from the beginning of the assignment. After 12 weeks an Agency Worker will be entitled to contractual annual leave:

  • Band 1-6: 23 days leave plus 8 bank holidays (Increase of 3 days)
  • Band 7-10: 27 days leave plus 8 bank holidays (Increase of 7 days)

Agencies may vary their approach to occupational annual leave:

  • Reed Specialist Recruitment(Grades 1-6) Although Reed provide agencies worker with an accrued allowance for statutory leave the 3 days additional occupational annual

leave is added as a percentage to the hourly rate and rolled up.

  • Specialist Recruitment Agencies (Grade 7+) may chose to roll the additional annual leave up into the hourly rate

Action for Managers: Managers should ensure Agency Workers are aware that they will be required to take annual leave throughout the contract and that this will increase after 12 weeks to be in line with the Universities terms and conditions. It is advised that the Agency Worker is set up with a holiday card to track their leave in the same way as permanent staff of the same grade.

Christmas Closure:Christmas closure days are discretionary therefore Agency Workers will be paid for closure days if they are engaged overthe Christmas period but should not accrue them on a monthly basis. They should claim for these days on their timesheet as if worked.

Action for Managers: The above point is included in the Guidance for Agencies however please check that this is adhered to and that the Agency Worker understands the arrangement for Christmas closure.

Maternity Rights.Agency Workers who have completed the 12 week qualifying period will be entitled to maternity rights, including paid time off for antenatal care and a risk assessment (not occupational maternity pay).

Other entitlements

Agency Workers will also be entitled to overtime payments where authorised, shift/unsocial hours allowances, risk payments for hazardous duties where appropriate however these are not applicable to the majority of university employees.

4)Agency Workers – Excluded Entitlements

  • Occupational sick pay
  • Occupational pension scheme
  • Occupational maternity, paternity or adoption pay
  • Redundancy pay
  • Notice pay
  • Payment for time off for Trade Union duties
  • Advances in pay or loans e.g Season tickets
  • Expenses such as accommodation or travel
  • The majority of benefits in kind e.g Employer funded training allowances or reduce cost nursery places et

5)Calculating the 12-week qualifying period:

  • In calculating the 12-week qualifying period, breaks between assignments or during an assignment will not break the continuity if they are for less than six weeks or if the break is for one of a number of specified reasons, including sickness or injury (up to 28 weeks), pregnancy, childbirth or maternity, adoption or paternity leave.
  • Alternatively there is a break in service/continuity if the Agency Worker starts a new and substantially different assignment with the hirer. If you are unsure discuss this with an HR Advisor.
  • There are express anti-avoidance measures. These address concerns that temporary Agencies and hirers would simply structure assignments by, for example, rotating Agency Workers to ensure that they never complete 12 consecutive weeks in the same role for the same hirer. Where a temporary work agency or hirer is found to be in breach of this provision, the tribunal is also entitled to make an additional award of compensation of up to £5,000. Recruitment managers must not put in place any avoidance measures.

6)Limited Companies

Individuals who work through their own Limited Company may be out of scope of the regulations providing they meet the HMRC guidelines around being self employed. For further information please visit However if they are engaged through a third party Agency then they are in scope of the regulations and all of the above will apply.

7)Umbrella Companies

Some individuals may be paid via an Umbrella Company for payroll purposes. Sometimes this is through a Recruitment Agency but not always. In this circumstance the Umbrella Company is classified as a Recruitment Agency and therefore the regulations apply as determined within the guidance.

8)Skilled Interim Professionals – Paying Above the Comparator Salary Band

The Agency Worker regulations are intended to ensure that individuals in lower paid roles are not underpaid. However, conversely, for short contracts demanding expertise the market can dictate a premium rate for specialist skills and experience. Therefore it is recognised that on occasions Recruiting Managers may need to pay more than the comparator hourly/daily rate for the role.

Action for Managers: In these circumstances it is not necessary to pay additional holiday pay. Managers should be mindful to keep costs to a minimum where possible and ensure that the agency has accounted for the comparator salary plus the holiday pay being absorbed by the proposed rate, rather than paying additional leave pay on top of the rate.

Skilled interim professionals may not be familiarwith taking annual leave during their assignment however to ensure compliance to the Working Time Directive all interim or agency staff should take the prescribed annual leave for their comparator role if the contract is over 12 weeks.

See appendices

Action for Managers:

Induction Fact Sheet for Agency Workers – Please ensure Agency Worker has a copy and is briefed on their first day.

Frequently Asked Questions – For Agencies G7+ to ensure they understand the University of Salford’s approach to managing Agency Staff in line with the Agency Worker Regulations

Appendix 1

Agency Workers - Induction Information Sheet

Below underlines the benefits that Agency Workers are entitled to from day one of the contract. Managers should provide this check-list for the Agency Worker on commencement of the work.

  1. Access To Vacancies – Day One

Agency Workers have the right to be informed of any relevant job vacancies within the University. Vacancies are advertised on the HR website and applications are made via the University’s online recruitment system. Agency Workers CAN apply for any Internal jobs.

N.B. The University has the freedom to apply it’s qualification/service requirements and the right of access will not apply to roles which are ring fenced as part of restructuring or redeployment process.

  1. Access To Facilities (may include) – Day One
  • Catering facilitiesMany of the University’s sites have hot meal and snack facilities. The Neo café and Costa Coffee branded facilities in several University buildings provide a wide variety of food and refreshment options.
  • Car parking and travel For a fee staff can use the campus car parks which are supervised by University security staff. Staff will need to buy a car park permit if they wish to park regularly and these can be arranged with the Car Parking office in the Myers Building. The car parks do however get full very quickly during term time so staff may wish to consider travelling by public transport instead; many buses stop next to the University, Salford Crescent train station is on the University campus and there are several secure bicycle lockers at various points around campus.
  • Leisure facilities Staff will have competitively priced access to the University’s leisure facilities including swimming pool, gym, squash and tennis courts. Every new member of staff is entitled to claim a 1 month free trial membershipatany point within the first 6 months of employment. If staff would like to take up this offer please contact the Leisure Centre to arrange it. See for more information.
  • Banking facilities The University offers on-site banking facilities with the NatWest bank on the University Peel Park campus, and a cash point in the Allerton Building.
  • Workplace crèche (subject to waiting list provisions). There is the right to childcare facilities but this does not mean the discounted childcare places which employees of the University benefit from. Busy Bees nursery is a large purpose built facility in the grounds of the University, featuring eight large playrooms, leading from a large central play area. More information can be found at
  • Toilets/shower facilities are available in many of the University sites
  • Employee common rooms are available in many of the University sites
  • Prayer room The University respects your right to freedom of religious belief and makes a prayer room available for staff
  • Library ServicesStaff have free access to the University’s full range of library services, plus entry to the other Greater Manchester universities libraries
  • Languages classesStaff have competitively priced access to on-site, lunch time and early evening languages classes.
  • Employee Assistance Programme (EAP)“Firstassist” is the University’s EAP provider they offer a professional, confidential advice and support service that is available 24 hours a day, 365 days a year. The “Firstassist” Web Portal provides information, self help guides on a wide range of topics including health, wellbeing, legal and relationship issues. To find out more visitthe HR website.
  • Occupational health Occupational health staff are available to offer staff advice on health issues.
  • Complementary therapies Staff have access to the University’s complementary therapies e.g. acupuncture.
  • Podiatry and physiotherapy services Staff have access to the University’s podiatry and physiotherapy services. See
  • Further details of staff benefits can be found on the HR website.

Upon completion of 12 weeks service the Agency Workers are entitled to the following;

  1. Same Basic working and Employment Conditions (12 Weeks):
  • Agency Workers will be entitled to the same basic working and employment conditions as those employed directly by the University on completion of 12 consecutive weeks in the same role for the same hirer.
  • Holiday pay

Agency Workers will be entitled to the following leave provisions after 12 weeks:

  • Band 6 or below will be entitled to 23 days leave (plus 8 bank holidays)

For those employed by Reed the additional 3 days occupational leave will be paid by adding it onto the hourly rate and will appear on pay slips in this way.

  • Band 7 or above will be entitled to 27 days leave (plus 8 bank holidays)

For those employed through specialist agencies all holiday pay is likely to be rolled up into the hourly rate however this will vary from agency to agency. The Agency Worker has a responsibility to take their leave, during their contract subject to line manager approval.